DIME TO OUTSOURCE ITEM PROCESSING TO NATIONAR
NEW YORK, Feb. 26 /PRNewswire/ -- The Dime Savings Bank of New York,

FSB (NYSE: DME), has signed an agreement to outsource a range of back
office functions "that will allow us to offer our customers a
better product at a significantly lower cost," it was announced
today by Jack Wagner, The Dime's chief information officer.

Wagner said that the bank has finalized a six-year contract with Nationar, a financial services company that provides a wide range of technology-driven services to financial institutions, to supply The Dime with item processing and output distribution services. Nationar is one of the largest providers of item processing services nationwide.
The outsourcing of such functions as check processing, lock box processing, along with the printing and distribution of checking account and mortgage statements will save The Dime about $800,000 annually," said Wagner.
"This will provide The Dime with a strategic position that will enable us to evolve into the utilization of such leading technologies as state-of-the-art check statement imaging, in which Nationar has made considerable investments," said Wagner.
"The arrival of image technology, and its introduction into the item processing world, is one of the factors driving banks to forge alliances with third-party suppliers that specialize in the delivery of efficient back-office services," said William Sheluck Jr., president and CEO of Nationar, based in New York City and with a major facility in Woodbury, Long Island. "More and more institutions are realizing the strategic advantages of outsourcing, which allows them to focus internally on areas that differentiate them."
Nationar will either purchase from The Dime or assume the leases on specialized related equipment supporting these functions.
Founded in 1859, The Dime Savings Bank of New York is the largest thrift institution in the East, with total assets of more than $10.7 billion. The bank operates 47 retail banking offices in New York, and through its subsidiary, The Dime Savings Bank of New Jersey, an additional eight retail banking offices in central New Jersey.
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/CONTACT: David J. Totaro of The Dime Savings Bank of New York, 212-326-6965, or Idan Sims of Sims & Associates, 212-725-3838, or Henry Feintuch of KCS&A Public Relations, 212-682-6300, ext. 211, for Nationar/
(DME) CO: The Dime Savings Bank of New York, FSB; Nationar ST: New York IN: FIN SU:

CK-KW -- NY061 -- 2872 02/26/92 14:22 EST

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